Disney Consumer Products: Marketing Nutrition to Children
Is Disney’s new strategy in foods likely to be profit enhancing?
Disney’s new strategy in foods is more likely to be profit enhancing. However, the profits will be driven by external factors. Reporters have a knack of spin-doctoring news to suit the media industry in one way or the other. The following are examples of the headlines that were featured in various news articles after the Disney’s new strategy got public: “Disney Gets Serious on Nutrition” that was run by the Boston Globe, C21Media’s “Mouse gets serious about Nutrition”, “Disney Bans All Junk Food” (Daily Mail), and “Disney Cleans Plate of Junk Food” (Los Angeles Times). These media outlets have wide circulation. Even though these media outlets have exaggerated the reports, they are enough to convince moms that the Disney’s food products conform with the recommendations of the U.S. Department of Agriculture, Dietary Guidelines for Americans and that they are safe for their children (David & Laura, 2009). This is coupled with the fact that a research revealed that the Disney brand had won the hearts of mothers for its high quality, trustworthiness and familiar products. Also, Moms’ brand loyalty was found to be strong. Thus, regardless of the preferences of their kids or peer pressure, the mothers would not trade their kids’ preferences with their health.
Should Disney look for more partners like Kroger? If so, When?
Disney should look for more partners like Kroger for various reasons. One of the reasons is so that it can profit from the products sold under the new strategy. Even though, for the moment consumption of the products that comply with the guidelines and recommendations such as Dietary Guidelines for Americans, soon people will know the importance of such advise. When such a time comes, Disney’s competitors such as McDonald’s will be forced to shape up or ship out of the industry. Assuming that there will be strict rules to alleviate the obesity epidemic, before the competitors embrace Disney’s new strategy, Disney will have hogged the limelight but most importantly, profited immensely. Kroger commanded just a mere 12% of the U.S grocery market share. However, this falls short of the recommended 80% market share of the nation’s outlets so as to be profitable with food. Thus, 68% not made up for. While Kroger covers 12% of the U.S grocery market share, Disney should look for ways to make up for the remaining 68%. The solution is looking for more partners like Kroger so as to dominate the U.S grocery market with an 80% majority.
How should Disney manage the risks identified at the end of the case? Are there any other risks associated with the new strategy?
The DSP will be financially hit temporary. Fortunately though, is the fact that DSP is a part of the larger Disney which owns other business segments namely Media Networks, Parks and Resorts, and Studio Entertainment. Disney’s other business segments are not concurrently hit financially. Thus, Disney has sufficient net income. The income that’s got from these other business segments should be used to boost the capital of DSP until the time the market will adopt to its re-positioning.
Some private sector businesses view the development of healthier food and beverage products as risky. Disney should manage that risk by view it as an opportunity. Despite the fact that DSP is all alone in the development of the healthier foods, soon, when other businesses follow suit it will be ahead of the pack. It should move ahead with its plans undeterred by what other businesses would think of it. It should review its success in the film industry whereby it chart the course of the industry before other came into the scene. Similarly, the private sector may view the making of changes in the absence of broad-based consumer demand, whatever the market, as risky. Reviewing its history in the film industry, it introduced “feature-length films to audiences accustomed to 8-minute short films.” In this context, it will revolutionized the food industry by introducing healthy foods to consumers accustomed to unhealthy ones. It should use that example. Another risk is that the decisions of decisions of food and beverage industries are centered on taste, palatability, cost, convenience, value, variety, availability, ethnic preferences, and safety. However, Disney’s new strategy is centered on safety only. It can manage that risk by using film characters to emphasize on the importance of safety above the rest. This can be effective considering its influence and widespread coverage. Another risk that is associated with the new strategy is film character competition made by other film industries emphasize on the need for tasty yet unhealthy food with characters contrasting with the new strategy.
How important is Disney’s move in the effort to reduce childhood obesity?
The move by Disney to reduce childhood obesity is crucial in that it proves that it doesn’t only value its consumers, but also cares about their health. Since Disney’s four business segments are influential, it will compel other companies to suit its example once its new strategy bears fruits. When these other companies follow its example, efforts to alleviate obesity epidemic will be successful.

Reference
Bell, D. E. & Winig, L. (2009). Disney Consumer Products: Marketing Nutrition to Children. Harvard Business School, p. 1-28.